Reports of misconduct, and legal action
iYogi's sales tactics have been criticised. InfoWorld in 2012 published articles under the byline of Robert X. Cringely, used by several InfoWorld writers, about people who called computer support lines thinking they were getting free or under-warranty support from their suppliers, but were in fact talking to iYogi. Attempts were made to sell them subscriptions for $US170 per year, and people were told, untruthfully, that their computers had severe problems. Brian Krebs, formerly a writer for The Washington Post and later a blogger on security, called iYogi and concluded that the company was indeed trying to scare users into subscribing. After this information was first published, other people contacted the author to report similar experiences. Dave Mello, a vice-president of support and services for Kaspersky Lab, reported regular complaints from customers who had been under the impression that they were receiving authorized Kaspersky Lab support. Cringely said about iYogi "How it goes about selling support, however, is not unlike how the Mob markets protection: through fear and intimidation."
In March 2012 antivirus software company Avast! severed its ties with iYogi. Under an agreement that lasted a little more than two years, iYogi had provided online support to Avast! users free-of-cost. Avast! accused iYogi of forcefully selling its online support plans to Avast! users; which the antivirus supplier characterised as unnecessary and expensive. Avast! accused iYogi of, at best, misconduct.
Reports of misleading conduct continued in 2015. Nuance Communications, on hearing that iYogi was selling technical support for their Dragon NaturallySpeaking, in April 2015 clarified that iYogi was not certified by Nuance, suggested "NOT USING the support site for iYogi", and "Be sure that you are using Nuance's technical support".
A false advertising class-action lawsuit was filed in New York against iYogi, Inc. in 2013, and was continuing as of October 2015. The complaint alleged that iYogi deceptively offered "Free PC Diagnostics" and a phone consultation with a "Tech Expert" who will identify and solve computer problems although there is no "credible diagnostic testing", and "virtually every potential customer" receives the same warning about problems that need resolving by iYogi.
Nearly 200,000 of iYogi's existing and previous subscribers alleged that iYogi had violated the US Telephone Consumer Protection Act (TCPA) by aggressive sales tactics, including calling people who had asked to be taken off of the call list. In October 2015 a federal court approved a deal including $40 payments to each of about 189,000 iYogi subscribers if they submit a claim form (a total of about $7.5m, only 8% of the available damages under the TCPA).
iYogi filed Multiple lawsuits in California against critics of the company. iYogi claimed that the critics were violating trademark law and defaming the company.
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It was reported on 16 December 2015 that Washington state, US, together with Microsoft and AARP, had filed a lawsuit alleging deceptive business practices under the state Consumer Protection Act and violations of the state Computer Spyware Statute. The state Attorney General said that hundreds if not thousands of Washington residents had been scammed by iYogi. iYogi announced, before responding formally, that the lawsuit was without merit, and that they would have clarified the issues if they had been consulted.
In December 2015 Infinite Computer Solutions sued iYogi for non-payment of invoices worth $6.7 million. According to a court filing of 12 May 2016, iYogi indicated that it would make a settlement offer, but was not at the time in a financial position to do so. In October 2016 a court ruled that iYogi had to pay $7.3 million to Infinite Computer Solutions.
In March 2016 Tata Communications, Bankers Warranty Group, OneCall sued iYogi for breach of contract, non-payment, and other issues. iYogi filed a Notice of Appearance in the Washington State case in late March, and had 60 days from that submission to respond formally. Tata Communications was awarded $1.24m as part of a default judgment against iYogi reported on 21 September 2016. In some of the suits iYogi's attorneys resigned because the company failed to meet court deadlines.
In April 2018, a Washington State court issued judgment in the iYogi lawsuit. In addition to the judgments, iYogi's United States president, Vishal Dahr, agreed to cease the company's illegal practices in Washington State, with $500,000 in suspended penalties. iYogi is now shut down completely, but before they ended operations, the company allegedly told their users that they were still in business Archived 1 October 2018 at the Wayback Machine. After this last false statement, iYogi has ceased its business operations.
As of July 2020 phishing emails claiming to be from IYogi are still being sent.
